Another 1.1 billion reasons to abandon power sell-off

The O’Farrell government should shelve its plans to privatise the state’s power stations after Macquarie Generation’s decision to write $1.1 billion off the value of its assets, according to Greens NSW MP John Kaye.

“Mac Gen takes $700m carbon tax writeoff“, Business Day section, page 1, Sydney Morning Herald, 17 April 2012

“Carbon tax write down for NSW generator“, ABC Online, 17 April 2012

Dr Kaye said: “Treasurer Mike Baird’s power sell-off is turning into a fire sale.

“No one should be surprised that the carbon price will reduce the financial value of the state’s largest carbon emitter. The federal government’s Clean Energy Future package will inevitably make coal-fired power stations less profitable.

“The purpose of penalising carbon emissions is to drive change in the electricity industry.

“Macquarie Generation’s $1.1 billion write-down could foreshadow a total reduction of $1.4 billion in the sale value of NSW’s state-owned power stations.

“The O’Farrell government is pushing ahead with the sale despite the uncertainty over the impacts of the carbon price. If Treasurer Mike Baird does not abandon the privatisation, the assets could be sold for a song while NSW households continue to face higher power prices for electricity.

“Premier O’Farrell’s predecessors ploughed ahead with their gentrader sell-off, despite warnings that it would be a financial disaster. The voters punished Labor in even greater numbers for the fire-sale.

“Coalition MPs should learn the lesson before the state loses yet more billions on a dodgy sell-off,” Dr Kaye said.

For more information: John Kaye 0407 195 455